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HomeMy WebLinkAboutMinutes_GEDCO_12.15.2008Notice of Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, December 15, 2008 The Board of Directors of the Georgetown Economic Development Corporation, created pursuant to Section 4A of the Economic Development Act of 1979, as amended (Tex. Rev. Civ. Stat. Ann. Art 5190.6), will meet on Monday, December 15, 2008 beginning at 02:00 PM in the City Council Chambers, located at 101 E. 7th Street, Georgetown, Texas If you need accommodations for a disability, please notify the city in advance. Georgetown Economic Development Corporation Members: Ben Oliver, Rick Smith, Ron Shelly, Pat Berryman, Dale Ross Call to Order at 02:00 PM ADiscussion and possible action regarding the Project Progress Report, including Hope Lumber Company nka Pro-Build South, Citigroup, Vista Solutions, Loading Dock, Airborn, Orthopeutics, The Beauty Escape Salon, Texas Outdoor Power Company, and Enflite. -- Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager B.Consideration and approval of the minutes from the Regular Board Meeting held Monday, November 3, 2008 -- Ben Oliver, Secretary C. Consideration of the October 31, 2008 and November 30, 2008 Financial Reports--Micki Rundell, Finance Manager D.Acceptance of the Investment Policy for the Georgetown Economic Development Corporation (GEDCO) as amended by City Council on November 10, 2008--Micki Rundell, Director of FInance E.Acceptance of the Quarterly Investment Report for the Georgetown Economic Development Corporation (GEDCO) for the quarter ended September 30, 2008 --Micki Rundell, Finance Manager F.Discussion and possible action to approve funding to provide tenant finish out in the city owned fire station located on Main Street in downtown Georgetown. A current project, Inwood Estate winery , is considering the old Fire Station #1 as a manufacturing and retail location--Mark Thomas, Economic Development Director EXECUTIVE SESSION: The Georgetown Economic Development Corporation will meet in closed executive session as allowed by Texas Open Meetings Act (Texas Government Code Chapter 551), as follows: G.Section 551.072. DELIBERATION REGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase , exchange, lease or value of real property for purposes authorized by Section 4A of Economic Development Act of 1979 (as amended) which discussion in open session would have a detrimental effect on negotiations with third persons. H.Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is conducting economic development negotiations; and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. -Project Wireline -Project Flow I.Section 551.071. CONSULTATION WITH ATTORNEY Consultation with attorney regarding legal issues related to agenda items and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. REGULAR SESSION: The Board will reconvene in regular open session to take any action necessary related to any of the above-posted executive session items. J.Action from Executive Session Certificate of Posting I, Sandra Lee, City Secretary for the City of Georgetown, Texas, do hereby certify that this Notice of Meeting was posted at City Hall, 113 E. 8th Street, a place readily accessible to the general public at all times, on the _____ day of _________________, 2008, at __________, and remained so posted for at least 72 continuous hours preceding the scheduled time of said meeting. __________________________________ Sandra Lee, City Secretary Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas Monday, December 15, 2008 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, December 15, 2008. Members Present: Rick Smith, Pat Berryman, Ben Oliver, Dale Ross Members Absent: Ron Shelly Staff Present: Paul E. Brandenburg, General Manager, Micki Rundell, Finance Manager, Leticia Zavala, Controller, Mark Thomas, Economic Development Director, Shirley J. Rinn, Deputy City Secretary, George Gomez, Economic Development Program Specialist, Trish Carls, City Attorney Minutes Regular Meeting Meeting was called to order at 2:05 p.m. ADiscussion and possible action regarding the Project Progress Report, including Hope Lumber Company nka Pro-Build South, Citigroup, Vista Solutions, Loading Dock, Airborn, Orthopeutics, The Beauty Escape Salon, Texas Outdoor Power Company, and Enflite. -- Mark Thomas, Economic Development Director and Paul E. Brandenburg, General Manager Paul Brandenburg and Mark Thomas gave the Board an overview of the status of each of these projects. B.Consideration and approval of the minutes from the Regular Board Meeting held Monday, November 3, 2008 -- Ben Oliver, Secretary Motion by Berryman , second by Oliver to approve the minutes from the Regular Board Meeting held Monday, November 3, 2008 - Approved 4-0 (Shelly Absent) C. Consideration of the October 31, 2008 and November 30, 2008 Financial Reports--Micki Rundell, Finance Manager Zavala gave the overview of the Financial Reports, focusing on the most recent one, including monthly sales tax revenues, monthly expenditures, budgetary report, and other relevant financial information. Zavala told the Board that we have not received the most recent sales tax information. She told the Board that sales collections are 8% down for October. There was discussion regarding benchmarking with other cities to gauge where the City of Georgetown is on its sales tax collections relative to those other cities. Rundell told the Board that housing starts are way down which is having an impact on sales tax collection. Rundell also told the Board that she doesn't feel like we are going to meet budget due to the downturn. She has budgeted conservatively, but still doesn't think we will make our numbers. There was additional discussion regarding retail closings in Wolf Ranch, across the region and the nation and how it could impact our area. D.Acceptance of the Investment Policy for the Georgetown Economic Development Corporation (GEDCO) as amended by City Council on November 10, 2008--Micki Rundell, Director of Finance Zavala gave the Board an overview of the Investment Policy and the changes from last year's Policy. She told the Board that the Policy had been approved by the City Council. Motion by Beryman, second Oliver to accept the Investment Policy for the Georgetown Economic Development Corporation (GEDCO) as amended by City Council on November 10, 2008. Approved 4-0 (Shelly Absent) E.Acceptance of the Quarterly Investment Report for the Georgetown Economic Development Corporation (GEDCO) for the quarter ended September 30, 2008 --Micki Rundell, Finance Manager Zavala gave the Board an overview of the Quarterly Investment Report for September 30, 2008. She also told the Board that a security would be maturing this month. F.Discussion and possible action to approve funding to provide tenant finish out in the city owned fire station located on Main Street in downtown Georgetown. A current project, Inwood Estate winery, is considering the old Fire Station #1 as a manufacturing and retail location--Mark Thomas, Economic Development Director Thomas gave the Board an overview of Inwood Estate Winery and its proposal to bring his business to Georgetown. Thomas provided the Board a 10 Pro Forma for the Company. Thomas went on to discuss the need for Georgetown to have a type of unique business niche in the downtown that makes it different from Salado, Wimberley, and Fredericksburg. There was discussion regarding the vacancies in the buildings on the square and how those vacancies can ultimately have an impact on the ability to attract prospects to the downtown. Thomas told the Board that Inwood would like to move their wholesale operation to Georgetown because they feel it will increase their visibility and retail sales. However, the move would be a challenge and that the company would need a relocation package of $250,000 that would act as a cash infusion for the company. Thomas said that the owner has indicated that if Georgetown can put together a local investment package they will come to Georgetown. Thomas told the Board that $550,000 is needed to buildout/remodel the bays of the old Fire Station #1. There was extensive discussion regarding the need of the City to do improvements to enhance the City's ability to lease the potential retail space in the Old Fire Station. This discussion included clawback provisions, the City's investment and ROI, scenarios regarding whether or not the 4A could lease the space from the City and in turn lease it to a retailer, whether or not the winery could partner with a deli/restaurant, etc. Thomas also told the Board that the timing of this winery project is important because of the need for the winery to plant vineyards as soon as possible if the project is approved. It was clarified that the 4A Board is being asked to provide funding to renovate an old building and bring it up to standard and current codes . There was additional discussion regarding the merits of this project. Motion by Berryman , second by Ross to approve 4A funding in an amount not to exceed to $550,000 to renovate the old Fire Station #1 to current standards and to authorize staff to negotiate a Performance Agreement with Inwood Winery to lease the facility contingent upon legal review. Approved 4-0 (Shelly Absent) Rundell told the Board they would still need to discuss how they would like to fund this project. Recessed into Executive Session at 2:55 p.m. EXECUTIVE SESSION: The Georgetown Economic Development Corporation will meet in closed executive session as allowed by Texas Open Meetings Act (Texas Government Code Chapter 551), as follows: G.Section 551.072. DELIBERATION REGARDING REAL PROPERTY Discussion and possible action to deliberate the purchase , exchange, lease or value of real property for purposes authorized by Section 4A of Economic Development Act of 1979 (as amended) which discussion in open session would have a detrimental effect on negotiations with third persons. H.Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberation regarding commercial or financial information that the corporation has received from a business prospect that the Georgetown Economic Development Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown and with which the Corporation is conducting economic development negotiations; and/or deliberation regarding the offer of a financial or other incentive to a business prospect that the Corporation seeks to have locate, stay, or expand in or near the territory of the City of Georgetown. -Project Wireline -Project Flow I.Section 551.071. CONSULTATION WITH ATTORNEY Consultation with attorney regarding legal issues related to agenda items and other matters in which the duty of the attorney to the Georgetown Economic Development Corporation under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Reconvened into Regular Session at 3:21 p.m. REGULAR SESSION: The Board will reconvene in regular open session to take any action necessary related to any of the above-posted executive session items. J.Action from Executive Session There was no action out of Executive Session. Adjourned at 3:24 p.m. Attest: __________________________________________________________ Ben Oliver, Corporate SecretaryRick Smith, President